Intro
Hello Folks,
The GP13 voting window is approaching and, as always, the eligible Folks Finance Liquid Governors will have voting power on the FF proposals. Below are the details about the xALGO listing proposal.
We look forward to your feedback.
Summary
This publication provides an overview of the decision to add xALGO in the Folks Finance lending market.
Abstract
xALGO is the primary liquid staking token on the Algorand blockchain, enabling users to stake ALGO while maintaining liquidity within DeFi. By staking ALGO through Folks Finance, users receive xALGO tokens, which accrue rewards over time. The introduction of xALGO as collateral in Folks Finance will provide users with greater flexibility and increased access to liquidity, tapping into the growing DeFi ecosystem on Algorand. Full xALGO documentation here: xALGO - Liquid Staking | Folks Finance
Motivation
The integration of xALGO into Folks Finance is expected to attract a wider audience, providing greater flexibility and opportunities within the platform. Additionally, xALGO will likely generate new borrowing demand as users seek to leverage their staked ALGO or lend their xALGO tokens for yield.
This initiative will appeal to users who want to maintain a long position in ALGO, while also earning additional staking rewards on their holdings.
xALGO will be integrated into both General and ALGO Efficiency mode, providing users with enhanced efficiency when using it as collateral. This will allow users to borrow against their staked ALGO, offering greater flexibility and the ability to maximize their capital within the Folks Finance ecosystem.
As a result, the demand for ALGO will increase, driving higher revenue for Folks Finance’s community treasury.
Below the asset parameters:
Ticker: xALGO
ASA ID: 1134696561
| Parameter | Value |
|---|---|
| Variable Base (RV0) | 0% |
| Variable Slope 1 (RV1) | 6.5% |
| Variable Slope 2 (RV2) | 100% |
| Stable additional Base Rate (RS0) | 2.25% |
| Stable Slope 1 (RS1) | 2.25% |
| Stable Slope 2 (RS2) | 100% |
| Stable Excess Rate (RS3) | 35% |
| Optimal Utilization Ratio (Uopt) | 55% |
| Optimal Stable to Total Debt Ratio (Oratio) | 20% |
| Rebalance Up Utilization Ratio (URU) | 90% |
| Rebalance Up Deposit Interest Rate Percentage (DIRRU) | 40% |
| Rebalance Down Delta (RD) | 20% |
| Retention Rate (RR) | 10% |
| Flash Loan Fee | 0.1% |
| Borrow Cap ($) | 5,000,000 |
| Single Stable Borrow Percentage Cap | 4% |
General Loan
| Parameter | Value |
|---|---|
| Collateral Factor | 65% |
| Borrow Factor | 100% |
| Collateral Cap ($) | 5,000,000 |
| Liquidation Max | 50% |
| Liquidation Bonus | 10% |
| Liquidation Fee | 10% |
Algo Efficiency Loan
| Parameter | Value |
|---|---|
| Collateral Factor | 85% |
| Borrow Factor | 100% |
| Collateral Cap ($) | 10,000,000 |
| Liquidation Max | 50% |
| Liquidation Bonus | 8% |
| Liquidation Fee | 10% |